Get Indonesia Pocket Tax Book 2019

Domestic Article 23 WHT is payable at the rate of 2% for most types of services where the recipient of the payment is an Indonesian resident and 15% for a variety of payments to resident corporations and individuals.

PPh 21: personal income tax in Indonesia, levied on individuals earning income from work or business within the country. Filing and payment: monthly, due by the 10th day of the month.

Monthly tax instalments (Article 25 income tax) constitute the first part of tax payments to be made by resident taxpayers and Indonesian PEs as a prepayment of their current year Corporate Income Tax (CIT) liability.

Indonesian Income Tax Rates Rates for residents are progressive up to 35% based on total income. Non-resident employees are taxed at a flat rate of 20%.

If the total amount of tax paid in advance through the year (Articles 22, 23, and 25 income taxes) and the tax paid abroad (Article 24 income tax) is less than the total CIT due, the taxpayer has to settle the shortfall before filing its CITR. Such a payment is referred to as Article 29 income tax.

Tax rate and basis of taxation The corporate income tax (CIT) rate in Indonesia is 25%.

ARTICLE 15 1. Subject to the provisions of Articles 16, 17, 18 19, 20 and 21,salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State.

Article 23/26 Income Tax (PPh 23/26) Domestic Article 23 WHT is payable at the rate of 2% for most types of services where the recipient of the payment is an Indonesian resident and 15% for a variety of payments to resident corporations and individuals.